Summary of Financial Results for Fiscal Period Ended June 30, 2019 (Infrastructure Fund)I n f ra st r uct u re Fu n d I s s ue r
S e c u r i t i e s C o d e
R e p r e s e n t a t i v e
Asset Management Company
R e p r e s e n t a t i v e
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Scheduled filing date of securities
reportSupplementary materials forfinancial results
Financial results briefing session

August 13, 2019
L i s t e d S t o c k Tokyo Stock
Canadian Solar Infrastructure Fund, Inc.
E x c h a n g e Exchange
9284
URL
https://www.canadiansolarinfra.com/(Title)Executive Director(Name) Tetsuya Nakamura
Canadian Solar Asset Management K.K.
CEO and Representative(Title)(Name) Tetsuya Nakamura
Director(Title)Chief Financial Officer(Name) Hiroshi Yanagisawa
Tel.
03(6279)0311
Scheduled date ofcommencement of cash
distribution payment

September 27, 2019

September 17, 2019

YES
YES（For institutional investors and analysts）(Amounts are rounded down to million yen)
1. Status of Management and Assets for Fiscal Period Ended June 30, 2019 (from January 1, 2019 to June 30, 2019)(1) Management Status(Percentage figures are the rate of period-on-period change)
Operating revenues
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal period ended
2,185
22.4
817
26.7
711
72.1
710
72.3
Jun. 2019
Fiscal period ended
1,785
644
413
24.4
412
24.7
11.7)
23.7
Dec. 2018
Rate of returnon equity

Profit per unit
Fiscal period ended
Jun. 2019
Fiscal period ended
Dec. 2018

Ordinary profit
to total assets ratio

Ordinary profit tooperating revenue ratio

yen

%

%

%

3,073

3.2

1.5

32.5

1,932

2.1

1.0

23.1

(2) Status of Cash Distributions
Distributions
per unit(excluding
distributions
in excess ofearnings)
Yen
Fiscal period
ended Jun. 2019
Fiscal period
ended Dec. 2018

Total
distributions Distributions in(excludingexcess of
distributions
earnings perin excess ofunit
earnings)
Million yen
Yen

Million yen

Distributions
per unit(including
distributions
in excess ofearnings)
Yen

%

%

3,073

710

577

133

3,650

843

100.0

3.2

1,783

412

1,817

420

3,600

832

92.3

1.8

Total
distributions
in excess ofearnings

Total
distributions(including
distributions
in excess ofearnings)
Million yen

Payout ratio

Ratio ofdistributions to
net assets(Note 1) The payout ratio is calculated according to the following formula.
Payout ratio = distributions per unit (excluding distributions in excess of earnings) / profit per unit x 100(Note 2) The payout ratio and the ratio of distributions to net assets are calculated based on the numerical data excluding
distributions in excess of earnings.
(Note 3) Total distributions in excess of earnings are all refunds of investments that constitute distributions on the decrease ofcapital contribution under the tax law.
(Note 4) The ratio of the decrease in net assets upon distributions in excess of earnings (refunds of investments that constitutedistributions on decrease of capital contribution under the tax law) is 0.020 for the fiscal period ended December 31,
2018 and 0.007 for the fiscal period ended June 30, 2019. In this regard, the ratio of the decrease in net assets is
calculated according to Item 4, Paragraph 1, Article 23 of the Ordinance for Enforcement of the Corporation Tax
Act.

- 1 -

(3) Financial Position
Total assets
Million yen

Net assets
Million yen

45,981
46,773Fiscal period ended
Jun. 2019
Fiscal period ended
Dec. 2018

Equity ratio

Net assets per unit%

yen

22,19348.3

95,99622,31547.7

96,523(4) Status of Cash Flows

Million yen

Million yen

Million yen

Cash and cash
equivalents at the endof the fiscal period
Million yen

2,265(1,405)(1,616)

2,466

2,434

(11,692)

10,4493,222

Cash flows fromoperating activities
Fiscal period ended
Jun. 2019
Fiscal period ended
Dec. 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Forecasts of Management Status for Fiscal Period Ending December 31, 2019 (from July 1, 2019 to December 31, 2019), Fiscal
Period Ending June 30, 2020 (from January 1, 2020 to June 30, 2020) and Fiscal Period Ending December 31, 2020 (from July 1,2020 to December 31, 2020)(Percentage figures are the rate of period-on-period change)
Operating revenues Operating income

Fiscal period
ending Dec.
2019
Fiscal period
ending June
2020
Fiscal period
ending Dec.
2020

Ordinary income

Distributions perunit (excluding
distributions inexcess of
earnings)

Net income

Distributions inexcess of earnings
per unit

Distributions perunit (including
distributions inexcess of
earnings)

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

yen

yen

yen

2,213

1.3

797

(2.4)

671

(5.6)

671

(5.5)

2,903

747

3,650

2,130

(3.8)

737

(7.6)

615

(8.4)

614

(8.4)

2,659

991

3,650

2,202

3.4

807

9.5

687

11.8

687

11.8

2,973

677

3,650

(Reference)
Fiscal period ending December 31, 2019 (184 days): Forecast total number of investment units issued and outstanding at endof the period: 231,190 units, Forecast profit per unit: 2,903 yen
Fiscal period ending June 30, 2020 (182 days): Forecast total number of investment units issued and outstanding at end of
the period: 231,190 units, Forecast profit per unit: 2,659 yen
Fiscal period ending December 31, 2020 (184 days): Forecast total number of investment units issued and outstanding at endof the period: 231,190 units, Forecast profit per unit: 2,973 yen* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies associated with amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than (i):No
(iii) Changes in accounting estimates:No(iv) Retrospective restatement
No

- 2 -

(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding(including treasury units) at end of period(ii) Number of treasury units at end of period

Fiscal period
Jun. 2019
Fiscal period
Jun. 2019

231,1900

Fiscal period
Dec. 2018
Fiscal period
Dec. 2018

231,1900(Note) For the number of investment units based on which profit per unit is calculated, please refer to “Notes regarding
information per unit” on page 28 below.

*

Explanation of Appropriate Use of Forecast of Management Status and Other Matters of Special Note
Forecast of management status and other forward-looking statements contained in this document are based on information that iscurrently available and certain assumptions that are deemed reasonable by Canadian Solar Infrastructure Fund. Accordingly, theactual management status, etc. may differ materially due to various factors. In addition, the forecast is not a guarantee of theamount of cash distributions. For details of the assumptions underlying the forecast of management status, please refer to“Assumptions Underlying Forecast of Management Status for Fiscal Period Ending December 31, 2019 (July 1, 2019 to
December 31, 2019), Fiscal Period Ending June 30, 2020 (January 1, 2020 to June 30, 2020) and Fiscal Period Ending December
31, 2020 (July 1, 2020 to December 31, 2020)” described on or after page 9 below.

- 3 -1. Associated Corporations of Canadian Solar Infrastructure Fund
Disclosure is omitted because there have been no significant changes from the description in the latest securities report (submitted
on September 26, 2018).

2. Management Policy and Management Status(1) Management Policy
Disclosure is omitted because there have been no significant changes from the description in the latest securities report (submitted
on September 26, 2018).
(2) Management Status
I. Overview of the Fiscal Period under Review
a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18, 2017 with money
invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafter referred to as the “AssetManager”) as the founder under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951 including
subsequent amendments; hereinafter referred to as the “Investment Trusts Act”). Registration with the Kanto Local Finance
Bureau was completed on June 9, 2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its investment
units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock Exchange”) Infrastructure Fund Market on
October 30, 2017 (security code: 9284), and issued new investment units (2,890 units) through third-party allotment on
November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 6, 2018 and issued newinvestment units (2,333 units) through third-party allotment on October 4, 2018. As a result, the total units issued at the end of
the fiscal period under review (as of December 31, 2018) were 231,190 units.
b. Investment Environment
During the fiscal period under review, the Japanese economy recovered at a moderate pace in the first half, despite economic
trend indexes showing stagnant conditions. Moving into the second half, although the recovery tone was maintained, overall
assessments changed from starting to follow a downward trend to deteriorating in terms of economic trend indexes, given signs
of weakness partially visible in exports and production. Going forward, attention needs to be paid to the trend of the Japanese
economy over the coming months because the possibility of an economic recession and economic uncertainty will increase dueto the consumption tax hike expected in October 2019, in addition to lingering downward risks attributable to overseas economic
conditions. In addition, it is becoming more likely that interest rates will fall in the U.S. and Europe against the backdrop of signsof an economic slowdown in the U.S., which has been relatively firm, and the advancement of the Euroskeptic group in theEuropean assembly election. Under these conditions, a close eye should be kept on the impact of the U.S.-China trade tensions
on the global economy.
Reflecting hope for progress in the U.S.-China trade talks and rising expectations for the termination of monetary tightening
in the U.S., the stock market in Japan reacted favorably after the start of 2019. Now, adjustments are underway amid concerns
over the global economic slowdown, movements of the exchange market, and prolongation of the U.S.-China trade tensions.
Meanwhile, the Infrastructure Fund Market, whose neutrality to economic fluctuations and high yield rates draw people’s interest,
has been following a recovery path since the beginning of the year.
In the environment surrounding renewable energy power generation facilities (stipulated in Article 2, Paragraph 3 of the Act
on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities [Act No.
108 of 2011, including subsequent amendments; hereinafter referred to as the “Act on Renewal Energy Special Measures”][excluding those that fall under real estate]; hereinafter referred to as “renewable energy power generation facilities”) held by
CSIF, Kyushu Electric Power Co., Inc. (hereinafter referred to as “Kyushu Electric Power”) implemented a full-scale output
control program across the Kyushu mainland to request renewable energy operators the temporary termination of power
generation through photovoltaic power generation facilities and wind power generation facilities (Note 1), starting from October
2018. Initially, the program was expected to be implemented mainly on weekends in spring and summer, because not many
people use cooling and heating equipment and factories are not in operation. However, in 2019, the program was implemented
for 16 days including weekdays in March, 20 days in April and 10 days in May. Meanwhile, it became possible to increase theamount of renewable energy-based electricity provided from the Kyushu area to other areas by approximately 300,000 kW at
maximum from April, by utilizing the transfer blocking system installed in the Kanmon interconnection line between the Kyushu- 4 -mainland and Honshu. As a result, Kyushu Electric Power can relax the output control on power generated by photovoltaic power
generation facilities and wind power generation facilities.
In consideration of the sharp increase in the number of the output control programs implemented in the service area of Kyushu
Electric Power in the spring, the Ministry of Economy, Trade and Industry indicated at a meeting of the Working Group on
Systems of the New and Renewable Energy Subcommittee held in April 2019 the policy of extending the application of output
control to photovoltaic power generation facilities of less than 500 kW (excluding those of less than 10 kW) connected under theprevious rule (Note 2), which classifies such facilities as not being subject to output control for the time being, and the guideline
was unanimously approved by the members. As of June 30, 2019, output control has not been implemented after May 12, 2019,
partly due to the start of regular inspections of the Genkai Nuclear Power Station Unit No.3 of Kyushu Electric Power on May
13, 2019.
With respect to the feed-in tariff system for renewable energy, the amount of photovoltaic power generation for business that
was authorized and introduced had increased rapidly since the commencement of the system in July 2012, and purchase prices
fell to less than half (from ¥40 per kWh in 2012 to ¥18 per kWh in 2018, mainly due to a decline in capital expenses). Against
this background, an issue arose involving projects with non-operating facilities, namely those not generating electric power
generation yet maintaining a right to high purchase prices. The Ministry of Economy, Trade and Industry has been taking a rangeof measures related to this issue. As an additional step, with respect to photovoltaic power generation of 10 kW or greater, whichobtained authorization between 2012 and 2014, the ministry has decided to apply new purchase prices that reflect the businesscosts at the time of the start of operation to projects with non-operating facilities (for which connection contracts were concluded
by July 31, 2016) whose deadlines for the start of operation are not established, in sync with the timing of the start of operation,
instead of high purchase prices based on costs at the time when the authorization was granted. The Ministry of Economy, Tradeand Industry has also decided to take steps to guarantee the start of operation as soon as possible. All renewable energy power
generation facilities owned by CSIF have already started operation; therefore these properties are not affected by the introductionof the said steps.
Some media outlets reported that the Ministry of Economy, Trade and Industry started to consider the abolishment of the feedin tariff system for renewable energy on June 12, 2019. If the ministry moves forward with the abolishment of the feed-in tariff
system as reported by the media, it is unlikely to have a significant impact on purchase prices of the photovoltaic power generation
facilities in operation owned by CSIF.
c. Management Performance
During the fiscal period from October 1, 2017 to June 30, 2018, CSIF acquired 13 photovoltaic power generation facilities,
etc. (Note 3) on October 31, 2017 (a total panel output (Note 1) of 72.7MW and a total acquisition price (Note 2) of ¥30,438
million) using the net proceeds from the issuance of new investment units through public offering as well as borrowings inaccordance with the basic asset management policy, etc. set forth in its Articles of Incorporation, and commenced substantive
investment operations. In addition, two photovoltaic power generation facilities, etc. (a total panel output of 2.6MW and a totalacquisition price of ¥992 million) were acquired on February 1, 2018 using borrowings with the aim of improving CSIF’s
portfolio and expanding external growth. As a result, CSIF held and managed a portfolio consisting of 15 photovoltaic power
generation facilities, etc. (a total panel output of 75.3MW and a total price (Note 4) of ¥35,963 million) as of the end of theprevious fiscal period.
During the previous fiscal period under review, CSIF acquired an additional three photovoltaic power generation facilities,
etc. on September 6, 2018 (a total panel output of 30.3MW and a total acquisition price of ¥11,530 million) using the net proceedsfrom the issuance of new investment units through public offering as well as borrowings. As a result, CSIF held a portfolio
consisting of 18 photovoltaic power generation facilities, etc. (a total panel output of 105.6MW and a total price of ¥47,100
million) as of the end of the fiscal period under review. CSIF achieved steady growth to an asset scale of over 100MW panel
output for the first time as a listed infrastructure fund.
In addition, during the fiscal period under review, CSIF acquired one facility on March 1, 2019 with cash on hand and anotherfacility on March 29, 2019 using borrowings and cash on hand, or a total of two facilities (a total panel output of 3.3MW and a
total acquisition price of ¥1,320 million). As a result, CSIF held a portfolio consisting of 20 facilities (a total panel output of
108.9MW and a total price of ¥50,000 million) as of the end of the fiscal period under review. In terms of asset scale, CSIF
continued to be the largest operator among listed infrastructure funds as of the end of the fiscal period under review.
(Note 1) “Photovoltaic power generation facilities” shall refer to renewable energy power generation facilities that generate power by using
sunlight, among other sources, as energy, while “Wind power generation facilities” refer to renewable power generation facilities thatgenerate power by using wind power, among other sources, as energy. The same shall apply hereunder.
(Note 2) “Previous rule” shall, as it pertains to photovoltaic facilities (excluding those of less than 10kW) installed in the service area of Kyushu- 5 -Electric Power, refer to the rule on output control that applies to photovoltaic power generation facilities covered by connection requests, forwhich Kyushu Electric Power authorized interconnection on or before January 25, 2015. The previous rule specifies that output control may
be implemented for up to 30 days every year without any compensation, while no such restriction is set in the current rule.
(Note 3) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the maximum output stated in
specifications of solar cell module) used in each solar energy facility by the total number of panels. The same shall apply hereunder.
(Note 4) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and other acquisition expenses related to theacquisition of assets, property-related taxes, urban planning taxes, consumption taxes and other fees and charges) described in the sale andpurchase agreement pertaining to each asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.
(Note 5) “Renewable energy power generation facilities, etc.” shall collectively refer to renewable energy power generation facilities as well as realestate and the right of lease (including the right of sublease) of real estate or the surface right (hereinafter referred to as “Site, etc.”) to install,
maintain and operate the renewable energy power generation facilities. In addition, “photovoltaic power generation facilities, etc.” shallcollectively refer to photovoltaic power generation facilities (of renewable energy power generation facilities, photovoltaic power generation
facilities shall specifically refer to renewable energy power generation facilities that generate power using solar light as the source of energy;
the same shall apply hereunder) as well as real estate and the right of lease (including the right of sublease) of real estate or the surface rightto install, maintain and operate photovoltaic power generation facilities. The same shall apply hereunder.
(Note 6) “Price” shall mean the intermediate value calculated by CSIF using the appraisal value of each power plant as of June 30, 2018 for the second
preceding fiscal period, December 31, 2018 for the previous fiscal period and as of June 30, 2019 for the fiscal period under review as statedin valuation reports obtained from PricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd..
The same shall apply hereunder.

d. Overview of Financing
In the fiscal period under review, CSIF undertook the borrowing of funds amounting to a total of ¥700 million in March 2019.
On the other hand, a contractual repayment was made at the end of the fiscal period under review, and the amount of borrowings
as of the end of the fiscal period under review came to ¥23,513 million. Consequently, the ratio of interest-bearing debt to total
assets (ratio of interest-bearing debt to total assets at the end of fiscal period) was 51.1%.
e. Overview of Business Performance and Distributions
As a result of the management described above, the business performance in the fiscal period under review recorded operating
revenue of ¥2,185 million, operating income of ¥817 million (mainly due to the impact of unseasonable weather), ordinary
income of ¥711 million and net income of ¥710 million.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation, CSIF shall
distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as defined in Article 67-15 of the
Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will generally be made inaccordance with the cash distribution policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guidelines formulated as part of its internal regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow (hereinafter referred toas “FCF”) generated by its renewable energy power generation facilities, in amounts determined in the following manner. The
amount available for distribution shall be calculated by multiplying FCF, that is net cash flow (hereinafter referred to as “NCF”;
CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal periods incalculating NCF) to be vested to equity investors after deducting FCF payable to debt investors, by a certain ratio (hereinafterreferred to as “payout ratio”; The payout ratio for the 4th fiscal period is 48.0%.) determined by CSIF in light of the amount of
NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In determining the payout ratio
described above, CSIF will consider the forecast NCF for each fiscal period to realize that level of distributions.
In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess of earnings foreach fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the case where NCF
calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”; CSIF shall incorporate the total
amount of NCF remaining after deducting distributions for the preceding fiscal periods in calculating actual NCF) exceeds NCF
projected for the fiscal period (hereinafter referred to as “projected NCF”; CSIF shall incorporate the total amount of NCF
remaining after deducting distributions for the preceding fiscal periods in calculating projected NCF) on the basis of an energy
output value projected by professional specialists (P50) which forms the foundation for the calculation of rents with regard to
the renewable energy power generation facilities, CSIF intends to limit the cash distribution to the amount of projected NCF
multiplied by the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends to make a cash distribution- 6 -for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF determined to make a distribution for the fiscal period under review of ¥843,843,500,
equivalent to 48.0% of projected NCF for the period (¥1,758,007,291). As a result, distribution in excess of earnings is¥133,396,630, after deducting dividends for the period of ¥710,446,870. Dividend per investment unit is ¥3,650 for the fiscal
period under review.
II. Outlook for the Next Fiscal Perioda. Outlook for the Future Management
The Japanese economy is thought to already be in a recessionary phase after peaking in the fall of 2018. With (i) capital
investments including those in facilities related to the Tokyo Olympics almost completed and (ii) the consumption tax rate
expected to be raised in October 2019, attention needs to be paid to the likelihood of downward pressure being put on theeconomy, going forward. Given the strong possibility that the slowdown of the U.S. economy will become apparent following
the worsening of the Eurozone and Chinese economies, the market is cautious about the possibility that it will enter a recessionary
phase in the near future. It is also necessary to monitor the likelihood of the appreciation of the yen against the U.S. dollar, givena backdrop of the ending of circumstances that support an increase in interest rates and the rising expectations of lower interest
rates in the U.S.
With respect to the environment surrounding photovoltaic power generation facilities that are included in renewable energy
power generation facilities, as stated in “(I. Overview of the Fiscal Period under Review) b. Investment Environment” above,with the goal of introducing renewable energy wherever possible while simultaneously curbing the burden on the public, adecision was made on December 5, 2018 to apply new purchase prices that reflect the business costs at the time of the start ofoperation, to projects with non-operating facilities for photovoltaic power generation for business use, in sync with the timing of
the start of operation, instead of high purchase prices based on costs at the time the authorization was granted. Steps were also
taken to guarantee the start of operation as soon as possible.
The output control program, in which a request for the temporary termination of power generation was made to operators offacilities that generate power through renewable energy such as sunlight, was implemented in the service area of Kyushu ElectricPower, starting from October 2018. If the introduced amount of renewable energy continues to increase, going forward, this
output control is likely to be implemented outside Kyushu region, including in Tohoku region and Chugoku region. Meanwhile,
to minimize output control, the Ministry of Economy, Trade and Industry plans to enhance inter-regional connection line
networks, one between Hokkaido and Tohoku and the other between Tohoku and Tokyo, respectively, to use solar and otherrenewable energy-generated electric power in broader areas, efficiently. In addition, to secure the necessary amount of power
subject to control by extending the application of output control, and to reduce each operator’s burden, the ministry has indicateda policy of extending the application of output control on photovoltaic power generation, to photovoltaic power generation
facilities of less than 500 kW (excluding those of less than 10 kW) operating under the previous rule which classifies such
facilities as being outside the scope of output control for the time being. In addition to the reduction of the controlled amount ofoverall renewable energy, the ministry appears to be ready to work on facilitating online operation in conjunction with output
control, so that power generation operators can reduce the loss of opportunities and lower personnel expenses.
b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical integration modelthat has developed mainly in the photovoltaic power generation market in Europe and America and applies this model in the
global market, including Japan. CSIF considers that mutual cooperation between the Group and CSIF (engaging in investment
in and management of photovoltaic power generation facilities) through the Sponsor Group based on the vertical integration
model for the construction of the value chain with the aim of creating mutual value should lead to the enhancement of value
for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right granted by the Sponsor
Group and acquiring photovoltaic power generation facilities, etc. whose value is high from the pipelines of the Sponsor. In
addition, CSIF will aim to acquire photovoltaic power generation facilities, etc. held by persons other than the Sponsor Groupby utilizing the Sponsor Group’s networks of brokers and power producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose companies (they may behereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor has entered into the asset management service
agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafter referred to as “CSOM Japan”) and (iv) special purpose companies,
partnerships or other funds in which the Sponsor or its subsidiary own a majority interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquartered in Canada) at the top to- 7 -which the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor and provides
O&M services in Japan, in principle, for the availability of homogeneous O&M services to the extent that CSIF considers
essential. CSIF aims to thereby reduce the operational risk and operating costs by utilizing the services of CSOM Japan andplacing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global monitoring platformof the Sponsor Group in the early discovery and repair of failures of power generation facilities, CSIF will aim to reduce theloss of power generation. In addition, CSIF will implement the appropriate repair and facilities replacement of assets undermanagement to maintain and enhance the value of assets from the medium- to long-term perspective, thereby securing stablerevenue in the medium to long term.
(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider financing by public
offering, borrowings and other means in the acquisition of new assets, while watching changes in the financing environment
closely.

- 8 -c Forecasts of Management Status
The forecast of management status for the fiscal period ending December 31, 2019 (July 1, 2019 to December 31, 2019), thefiscal period ending June 30, 2020 (January 1, 2020 to June 30, 2020) and the fiscal period ending December 31, 2020 (July 1,2020 to December 31, 2020) is as follows. For details of the assumptions underlying the forecast of management status, pleaserefer to “Assumptions Underlying Forecast of Management Status for Fiscal Period Ending December 31, 2019 (July 1, 2019 to
December 31, 2019), Fiscal Period Ending June 30, 2020 (January 1, 2020 to June 30, 2020) and Fiscal Period Ending December
31, 2020 (July 1, 2020 to December 31, 2020)” described on or after page 9below.

Operatingrevenues

OperatingincomeOrdinary income

Net income

million yen

million yen

million yen

million yen

yen

yen

yen

2,21

797

671

671

2,903

747

3,650

2,130

737

615

614

2,659

991

3,650

2,202

807

687

687

2,973

677

3,650

Fiscalperiodending Dec.
2019
Fiscalperiodending June
2020
Fiscalperiodending Dec.
2020
Ⅲ

Distributions
Distributions
per unit
per unit
Distributions in(including(excludingexcess of
distributions
distributions
earnings per unit
in excess ofin excess ofearnings)
earnings)

Facts arising after the settlement of accounts

Not applicable
Assumptions Underlying Forecast of Management Status for Fiscal Period Ending December 31, 2019 (July 1, 2019 to December 31,2019), Fiscal Period Ending June 30, 2020 (January 1, 2020 to June 30, 2020) and Fiscal Period Ending December 31, 2020 (July 1,2020 to December 31, 2020)
Item

Calculation period

Assumptions
・ 4th fiscal period :from July 1, 2019 to December 31, 2019 (184 days)
・ 5th fiscal period: from January 1, 2020 to June, 2020 (182 days)
・ 6th fiscal period :from July 1, 2020 to December 31, 2020 (184 days)
・The assumption is that CSIF has 20 photovoltaic power generation facilities, etc. that CSIF had

・

at the end of June 2019 (hereinafter referred to as the “Assets in Possession”).
These forecasts are based on the assumption that there shall have been be no changes in the・

composition of CSIF’s portfolio (acquisition of new projects or sale of acquired projects, etc.)
until the end of the 7th fiscal period, December 31, 2020.
CSIF’s portfolio may change, however, due to changes in the composition of the portfolio other・The lease agreements of the solar energy projects that CSIF intends to acquire will become

Portfolio

than the assumed new acquisition of projects as outlined above.

Operating revenues

effective as of the acquisition date. CSIF’s leasing structure for its solar energy projects will becomprised of basic rent and variable rent. Revenue forecasts for the 5th, 6th and 7th fiscal
periods are ¥2,213 million, ¥2,130 million and ¥2,202 million, respectively.
a) Basic rent for each solar energy project that CSIF intends to acquire is calculated asfollows:
Monthly projected energy output (P50) x (100-Y)% x 70% x FIT purchase price
Monthly projected energy output (P50) refers to such figure disclosed in the technical reports(an evaluation report of the system, the capacity, the relevant contracts attached andcontinuity (performance degradation and environmental evaluation)of the solar energy
facility) that the Asset Manager received from E&E Solutions Inc. with respect to each solar- 9 -energy project. Monthly projected energy output (P50) *¹x (100-Y)% *²represents the amountafter deduction of fees CSIF pays to the operators and fees regarding management of thelessee. Such amount will vary for each anticipated acquisition.
b) Variable rent for each solar energy project that CSIF intends to acquire is calculated asfollows:
Monthly actual energy output x (100-Y)% x FIT purchase price) – basic rent
Any amount that exceeds the basic rent after multiplying a certain rate of (100-Y)% to themonthly actual energy output for each solar energy project by FIT purchase price will be
captured as a performance-related variable rent. In any case, if the calculation of the variable
rent is a negative number, it shall be deemed to be zero.
(*Note 1) Projected energy output (P50) represents the output that is viewed to be achievable with a 50% probabilityby the third-party providers of the technical reports and other experts.
(*Note 2) Y represents the value for management costs of the lessees and operator remuneration fees. The value ofY will vary for each anticipated acquisition.

・Forecasted figures herein have been based on a projected energy output (P50) and are not・

guaranteed nor do they reflect the actual energy output, which will vary depending on the levelof solar irradiation.
CSIF has assumed no cancellations of the lease agreements or delinquencies or non-payment of・

rents by tenants.
CSIF has assumed that the current lease agreements will be renewed on equal terms under these
agreements.

・Of the main operating expenses for the lease of the acquired assets, operating expenses for the

Assets in Possession other than depreciation costs have been accounted for based on past figuresand estimates from subcontractors, etc., taking variables into account. Such costs for the 5th,
6th and 7th fiscal periods are assumed to be ¥593 million, ¥570 million and ¥570 million,
respectively.
・ Of the expenses for the lease of the Assets in Possession, property-related taxes are estimated at

・¥3 million, ¥3 million and ¥4 million for the fiscal periods ending December 31, 2019, June 30,
2020 and December 31, 2020, respectively.
Periodic payment of repair and maintenance costs based on the figures provided in the technicalreports and the Asset Manager's estimate have been taken into account. However, these figures
are subject to revisions as the actual figures can vary significantly depending on the operating

Operating expenses

・

period and are paid in irregular intervals, in addition to any instances where unexpected repairs
are required.
CSIF expects to pay ¥142 million, ¥141 million and ¥141 million for the 5th fiscal period, the・

6th fiscal period and the 7th fiscal period, respectively, as O&M fees.
CSIF has assumed that it will incur expenses related to the land lease of the Assets in Possession

・in the amount of ¥35 million, ¥35 million and ¥35 million for the fiscal periods ending
December 31, 2019, June 30, 2020 and December 31, 2020 (the 5th, 6th and 7th fiscal periods),
respectively.
CSIF has assumed that it will incur depreciation expenses, including certain ancillary expensesof ¥822 million, ¥822 million and ¥824 million for the 5th, 6th and 7th fiscal periods,
respectively. These figures are calculated using the straight-line method.

・
Non-operating expenses

Borrowings

CSIF has also assumed interest expenses and other borrowing-related expenses of ¥124 million,¥120 million and ¥118 million for the 5th, 6th and 7th fiscal periods, respectively.

・As of today’s date, the balance of borrowings of CSIF is ¥23,513 million. CSIF assumes that it・will repay such borrowings in amounts of ¥643 million, ¥642 million and ¥668 million at theend of December 2019, June 2020 and December 2020, respectively, under the agreement.
CSIF estimates that the LTV (loan-to-value) ratio will be approximately 49.0%, 48.5% and・

48.0% as of the end of the 5th, 6th and 7th fiscal periods, respectively.
CSIF calculates LTV using the following formula.
LTV = Total interest-bearing debt / Total assets × 100- 10 -

Item

Number of investment units

Distributions per unit
(excluding distributions inexcess of earnings)

Distributions in excess ofearnings per unit

Assumptions
・The assumption that CSIF uses is the total number of investment units issued and outstanding・

as of the date of this document, which is 231,190 units. CSIF has assumed that there will be nochange in the number of units issued and outstanding resulting from the issuance of additional
investment units, etc. until the end of the 7th fiscal period ending December 31, 2020.
Distributions per unit (excluding distributions in excess of earnings), distributions in excess of・earnings per unit and distributions per unit (including distributions in excess of earnings) havebeen calculated based on the assumption that the number of units issued and outstanding as ofthe end of each fiscal period will be 231,190 units.
Distributions per unit (excluding distributions in excess of earnings) are calculated based on the・cash distribution policy prescribed in CSIF’s Articles of Incorporation.
Changes in lessees, fluctuations in rental revenues due to changes in lease agreements,・

fluctuations in energy output, unforeseeable repair and maintenance expenses incurred and otherfactors may lead to changes in the amount of distributions per unit (excluding distributions inexcess of earnings).
Distributions in excess of earnings per unit will be generally based on the cash distribution・

policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guideline.
CSIF intends to make cash distributions to its unitholders for each fiscal period using cash flow

・

generated by the renewable energy projects (the “Free Cash Flow”*1). The amount available
for distribution shall be calculated by multiplying FCF less any amount payable to debt investors(the “Net Cash Flow,”*2 which shall belong to the equity investors; in the calculation of NCF,
the total amount of NCF remaining after deducting distributions for the preceding fiscal periods
is to be taken into account) by the applicable payout ratio, which will be determined by CSIF at
its discretion for each fiscal period. Further, CSIF intends to make distributions in excess ofearnings for each fiscal period in order to realize this policy.
With respect to distributions per unit (including distributions in excess of earnings) for the fiscal

periods ending December 31, 2019, June 30, 2020 and December 31, 2020 (the 5th/6th/7th fiscal
periods), CSIF intends to stably maintain the level of about ¥3,650. And the amount of
distributions in excess of earnings which CSIF plans to pay is ¥747 for the 5th fiscal period
ending December 31, 2019, ¥991 for the 6th fiscal period ending June 30, 2020 and ¥677 forthe 7th fiscal period ending December 31, 2020. This amount, including distributions in excessof earnings, is calculated by multiplying the forecast NCF for the relevant fiscal period (whichis calculated at the beginning of the relevant fiscal period) by a certain ratio, as described above.
The ratio is determined at the beginning of each fiscal period, considering the forecast NCF forthe relevant fiscal period. The ratio used for the 5th fiscal period ending December 31, 2019 is
82.0%.
・ CSIF may not make cash distributions (refunds of investment) in excess of earnings upon・

consideration of other options, such as repair and capital expenditure, repayment of loans,appropriation to funds for the acquisition of new properties, and the acquisition of treasury
investment units, by comprehensively considering the economic environment, the market
environment relating to the renewable energy power generation projects, the financial positionsof CSIF and other circumstances.
In this regard, cash distributions in excess of earnings (refunds of investment) involve a decreasein funds on hand, and thus if capital expenditure beyond the expectations of CSIF is required
due to any sudden events or other causes, there is a possibility of a shortage of funds on hand or
a restriction on the flexible acquisition of properties in terms of funds. In addition, in the caseof a cash distribution (refund of investment) in excess of earnings, the amount of such
distribution will be deducted from the total amount of funds contributed or the contribution
surplus.

(*Note 1) Free Cash Flow (FCF): Rent revenues minus expenses related to rent business and capital expenditures
related to assets. Expenses related to rent business include all cash expenses related to operation, including
payment of asset management fees and administrative service fees, but exclude interest payments related tointerest-bearing debt or other financing-related expenses.
(*Note 2) Net cash flow (NCF): Free Cash Flow minus interest payments related to interest-bearing debt and11repayments of interest-bearing debt for the relevant fiscal period plus the total amount of NCF remaining after
deducting distributions for the preceding fiscal periods.

・

CSIF has assumed that no revisions that will impact the above projections will be made to laws

・and regulations, tax systems, accounting standards, securities listing regulations and the rules of
The Investment Trusts Association, Japan, among others.
CSIF has assumed that no unforeseeable significant changes will occur in general economic

Otherstrends or conditions in the solar energy facility market and the real estate market.
(3) Risk of Investment
Disclosure is omitted because there have been no significant changes from the description in the latest securities report(submitted on September 26, 2018 including subsequent amendments.).

12

３．Financial Statement（１）Balance Sheet（Unit：thousand yen）
rd Period

3（December 31, 2018）
AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets
Fixed Assets
Property and equipment
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment ,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property and equipment
Intangible assets
Leasehold rights
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Long term deposits
Guarantee deposits
Total investment and other assets
Total fixed assets
Liabilities
Current liabilities
Operating Accounts payable
Accounts payable – operating
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Consumption tax payable
Deposits received
Total current liabilities
Non-current liabilities
Long-term loan payable
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus
Unappropriated retained earnings(Accumulated deficit)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*1

13

4th Period(June, 2019)

3,222,807
208,913
107,714793,148685
4,333,268

2,466,624
426,756
71,805215
2,965,401

797,621
28,399)769,22137,427,871
1,405,797)
36,022,074
505,287
22,181)
483,106
4,309,021
6,244
41,589,667

835,726
45,417)790,308
38,610,034
2,191,437)
36,418,597
521,176(32,570)
488,605
4,466,771
42,164,283

494,487
2,763
497,250

512,4112,746
515,158

324,500
12
7,800
21,021
353,333
42,440,252
46,773,521

307,42412
7,800
21,021
336,258
43,015,700
45,981,101

25,2901,239,176
56,31773,449857
5,246
1,400,337

26,344
1,286,149
83,003112,673868
49,9041,750
1,560,694

23,057,919
23,057,919
24,458,257

22,227,007
22,227,007
23,787,702

22,050,175(147,209)
21,902,965

22,050,175(567,281)
21,482,893

412,298

710,506

412,298
22,315,263
22,315,263
46,773,521

710,506
22,193,399
22,193,399
45,981,101*1

（２）Statement of Income(Unit: thousand yen)
3rd period

4th period(from July 1, 2018
to December 31, 2018)(from January 1, 2019
to June 30, 2019)

Operating revenues
Rental revenues of renewable energy power generation
facilities, etc.
Total operating revenues
Operating expenses
Rental expenses of renewable energy power generation
facilities, etc.
Asset management fee
Administrative service fees
Director’s compensation
Taxes and duties
Other operating expenses
Total operating expenses
Operating income or loss
Non-operating incomesInterest income
Insurance income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing-related expenses
Investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income tax - deferred
Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)*1

1,785,374*1

1,785,374*1- 14 -

1,035,958

2,185,392
2,185,392*1

1,234,114

43,934
17,0662,400
1,346
39,9281,140,634
644,739

55,97918,9452,400
399
56,352
1,368,191
817,20117
18,815
1,942
20,77515
27,146
1,355
28,517

97,912
103,408
51,132
252,452
413,062
413,062860
14874
412,187110412,298

106,345
28,083
134,428
711,290711,290870
0870
710,41986
710,506

（３）【Statements of Changes in Unitholders’ Equity】
3rd Fiscal Period (From July 1, 2018 to December 31, 2018)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance as of July 1, 2018

Capital surplus
or loss

Total unitholders’equityTotal surplus

Total net assets

17,315,550-

17,315,550

281,047

281,047

Distribution in excess ofearnings-

147,209)147,209)--

Dividend of surplus

-

-

-

280,936)

280,936)Net Income

-

-

-

412,187

412,187

4,734,625

147,209)

4,587,415

131,250

131,250

22,050,175

147,209)21,902,965

412,298

412,298

Changes of items during theperiodTotal changes of items during
the period
Balance as of December 31,
2018

*1

4th Fiscal Period (From January 1, 2019 to June 30, 2019)（Unit: thousand yen）
Unitholders’ equity
Unitholders’ capital
Deduction
Unitholders’fromunitholders’ capital(net)capitalUnitholders’capitalBalance as of January 1,
2019

SurplusCapitalsurplus or
loss

Total surplus

Totalunitholders’equityTotal net
assets

22,050,175(147,209)

21,902,965

412,298

412,298

22,315,263

22,315,263

Distribution in excessof earnings-(420,072)(420,072)--(420,072)(420,072)

Dividend of surplus

-

-

-

(412,211)(412,211)(412,211)(412,211)Net Income

-

-

-

710,419

710,419

710,419

710,419-(420,072)(420,072)

298,208

298,208(121,864)(121,864)

22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399

Changes of items during
the period

Total changes of items
during the period
Balance as of June 30,
2018

*1

- 15 -

（４）Statements of Cash Distribution
Fiscal Period under Review(From July 1, 2018
to December 31, 2018)412,298,211

I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained
earnings(Distributions in excess of retained
earnings)
IV. Retained earnings (deficit) carried forward
Calculation method for cash distributions

420,072,230

133,396,630

832,284,000(3,600)412,211,770(1,783)420,072,230

843,843,500(3,650)710,446,870(3,073)
133,396,630(1,817)86,441(577)
59,483

In accordance with Articles 47,
In accordance with Articles 47,
Paragraph 1 of Canadian Solar Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amount of Articles of Incorporation, the amount ofcash distributions shall be the amount of cash distributions shall be the amount of
profit in excess of an amount equivalent profit in excess of an amount equivalent
to 90% of distributable profits, as to 90% of distributable profits, as
stipulated in Article 67-15 of the Act on stipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation. Special Measures Concerning Taxation.
Based on this policy, CSIF decided to Based on this policy, CSIF decided tomake distributions of ¥412,211,770 make distributions of ¥710,506,353
which is the entire amount equivalent to which is the entire amount equivalent tothe unappropriated retained earnings for the unappropriated retained earnings forthe fiscal period under review of the fiscal period under review of¥412,298,211 excluding fractions of the ¥710,446,870 excluding fractions of the
distribution per unit that are less than ¥1. distribution per unit that are less than ¥1.
CSIF distributes cash in excess of
CSIF distributes cash in excess ofretained earnings every fiscal period retained earnings every fiscal period
based on the cash distribution policy based on the cash distribution policy
prescribed in Article 47, Paragraph 2 of prescribed in Article 47, Paragraph 2 of
CSIF’s Articles of Incorporation. Based CSIF’s Articles of Incorporation. Basedon this policy, CSIF decided to make cash on this policy, CSIF decided to make cash
distributions in excess of earnings (return distributions in excess of earnings (returnof capital categorized as a distribution of of capital categorized as a distribution of
the reduction in capital for Japanese tax the reduction in capital for Japanese tax
purposes) in the amount of ¥420,072,230 purposes) in the amount of ¥133,396,630
which is equivalent to 58.9% of the which is equivalent to 16.4% of theamount of depreciation expenses amount of depreciation expenses
recorded for the fiscal period under recorded for the fiscal period underreview of ¥813,434,738.
review of ¥713,524,700.
Accordingly, the distribution per unit
Accordingly, the distribution per unitis ¥3,650.

is ¥3,600.
(Note)

Fiscal Period under Review(From January 1, 2019
to June 30, 2019)
Unit: Yen
710,506,353

Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in
CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation
facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
- 16 -

Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize suchpolicy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewableenergy power generation facilities and if actual NCF calculated based on actual power generation during the applicablefiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limitof the amount of cash distributions for the applicable fiscal period.
.
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout
ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥832,284,000 which is equivalent
to 79.1% of forecast NCF amount for the fiscal period under review of ¥1,052,089,734. Of this, ¥420,072,230 which is theamount less of distributions of profit of ¥412,211,770 is distributions in excess of retained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥843,843,500 which is equivalent
to 48.0% of forecast NCF amount for the fiscal period under review of ¥1,758,007,291. Of this, ¥133,396,630 which is theamount less of distributions of profit of ¥710,446,870 is distributions in excess of retained earnings.

- 17 -

（５）Statement of Cash Flow
3rd period(From July 1, 2018
to December 31, 2018)
Cash flows from operating activities
Income (Loss) before income taxes
Depreciation cost
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in consumption taxes payable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable - other
Increase (Decrease) in accrued expenses
Other, net
Sub-totalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payment for long term deposit
Purchases of property and equipment
Purchases of intangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Dividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
periodCash and cash equivalents at the end of the fiscal period*1- 18 -（unit: thousand yen）
4th period(From January 1, 2019
to June 30, 2019)

413,062
713,524
51,132
17)
97,912
109,517
1,316,672
92,669)94,581)
7,073
13,846
6,021)
3,228
2,532,681
17
96,340)1,468)
2,434,890

711,290
813,434(15)
106,345(217,843)
793,148
49,90435,90917,075
1,053
26,686
39,839(3,024)
2,373,805
15(106,961)(859)
2,265,998

7,800)
11,679,932)
4,885)
11,692,617)(1,387,663)(18,294)(1,405,958)

8,850,000
2,656,191)
4,734,625
51,132)
280,936)
147,209)
10,449,154
1,191,427

700,000(1,483,938)(412,211)(420,072)(1,616,222)(756,182)

2,031,379

3,222,807

3,222,807*1

2,466,624

(6)NOTES ON GOING CONCERN PREMISE
Not applicable.
(7) [SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]
1.Method of depreciation andamortization of non-current assets

2.Standards for revenue and expense
recognition(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major property andequipment are as shown below:
Structures .......................................... 22 - 25 years
Machinery and equipment ................. 22 - 25 years
Tools, furniture and fixtures .............. 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown below:
Software ............................................ 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.
Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax, among
other taxes, on the infrastructure assets held, of the tax amount assessed and determined,
the amount corresponding to the calculation period is accounted as rental expenses. In
addition, reimbursement such as fixed assets tax, which is paid to the seller and otherpersons on the acquisition of infrastructure assets and other assets (“the amount equivalent
to the fixed assets taxes and other taxes”) is not recognized as rental expenses but includedin the acquisition cost of the concerned infrastructure assets and other assets. In the fiscal
period under review, the amount equivalent to the fixed assets tax and other taxes includedin the acquisition cost of infrastructure assets and other assets is 27,047 thousand yen.

3.Scope of funds in statement of cash
flows

4.Method of hedge accounting

5.Other significant matters serving as
the basis for preparation of financial
statements

Funds (cash and cash equivalents) in statement of cash flows consist of cash on hand,demand deposits and short-term investments with a maturity of three months or less at thedate of acquisition that can readily be converted into cash and that are subject toinsignificant risks of changes in value.
(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets the requirements for
special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments……Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the CSIF’s Articles ofIncorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, and thus theevaluation of effectiveness is omitted.
Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from the correspondingtransaction amount.

- 19 -

(8) Notes regarding financial statements[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
As ofJune 30, 2019

As ofDecember 31, 2018
50,00050,000[NOTES TO STATEMENT OF INCOME ]*1 Breakdown of profits and losses from the rental business of renewable energy power
generation facilities, etc.
(Unit: thousand yen)
From July 1, 2017 to
December 31, 2018

From January 1, 2019 toJune 30, 2019

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation
facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.

1,322,669

1,478,843

462,578

706,346

127

202

1,785,374

2,185,392

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation
facilities, etc.
(Management entrustment expenses)

127,128

144,616

2,055

8,560

(Taxes and duties )154,262

217,138(Utilities expenses)--(Insurance expenses)

12,90017,023(Depreciation expenses)

713,168

813,047(Land rent)

26,44433,727--

Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.

1,035,958

1,234,114

C. Profits and losses from the rental business of renewable energy
power generation facilities, etc. （A-B）

749,416

951,278(Repair and maintenance costs)(Other rental expenses)[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding
From July 1, 2017 to
December 31, 2018- 20 -

From January 1, 2019 toJune 30, 2019

Total number of authorized investment units

10,000,000 unit

10,000,000 unit

231,190 unit

231,190 unit

Total number of investment units issued andoutstanding[NOTES TO STATEMENT OF CASH FLOWS]*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From July 1, 2017 to
December 31, 2018

From January 1, 2019 toJune 30, 2019

Cash and deposits

3,222,807

2,466,624

Cash and cash equivalents

3,222,807

2,466,624[NOTES ON LEASE TRANSACTIONS]
Operating lease (as the lessor)
Future minimum lease payments(Unit: thousand yen)
Fiscal period ended

Fiscal period ended

December 31, 2018

June 30, 2019

Within one year

2,957,963

3,039,681

Longer than one year

48,222,398

48,276,834

Total

51,180,362

51,316,516[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or issuing investment
units. The basic policy is to build stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets and are exposed
to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted through the appropriatebalancing of the loan period and the interest rate type, and diversification of lenders, and the appropriate management ofvarious types of indexes, especially the general application of the upper limit of the ratio of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices, values arereasonably calculated. Since certain assumptions are used for the calculation of fair values, they may change if different
assumptions are used.

- 21 -

2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of December 31, 2018 and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

3,222,807

3,222,807-

208,913208,913

-

7,800

7,800

-

Total assets

3,439,520

3,439,520-(4) Current portion of long-term loans
payable1,239,176

1,241,069

1,892(5) Long-term loans payable

23,057,919

23,391,454

333,534

Total liabilities

24,297,096

24,632,523

335,427(6) Derivative transaction

-

-

-

(2) Operating accounts receivable(3) Long-term deposits(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
(3) Long-term deposits
This financial instrument refers to time deposits. With no significant difference between the expected interest rate for a new
deposit and a contractual interest rate, their fair values are very close to their book values. Therefore, the book values are used.
Liabilities(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every certain
period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, the book value
is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment of interest rate
swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the total sum of theprincipal and interest treated together with the said interest rate swap as one at the interest rate that is applied when the similarloan is obtained and that is reasonably estimated.
(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.
The table below shows the book value and fair values of financial instruments as of June 30, 2019, and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

2,466,624

2,466,624-

426,756

426,756

-

7,800

7,800

-

Total assets

2,901,181

2,901,181-(4) Current portion of long-term loans
payable1,286,149

1,287,698

1,548(5) Long-term loans payable

22,227,007

22,491,852

264,844

Total liabilities

23,513,157

23,779,551

266,393(6) Derivative transaction

-

-

-

(2) Operating accounts receivable(3) Long term deposits(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions- 22 -

Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
(3) Long-term deposits
These financial instruments are time deposits, and their fair values are deemed to be close to their book value as there is no
significant variance between the deposit and the contracted interest rates that are assumed upon a new cash deposit. Therefore,
the book values are used as the values.
Liabilities(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every certain
period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, the book value
is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment of interest rate
swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the total sum of theprincipal and interest treated together with the said interest rate swap as one at the interest rate that is applied when the similarloan is obtained and that is reasonably estimated.
(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2018)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one
one year,
two years, three years, four years, Longer thanyear
within two within three within four within five
five years
years
years
years
years
(1) Cash and deposits(2) Operating accounts receivable(3) Long-term deposits
Total

3,222,807

-

-

-

-

-

208,913

-

-

-

-

-

-

7,800

-

-

-

-

3,431,720

7,800

-

-

-

-

Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2019)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one
one year,
two years, three years, four years, Longer thanyear
within two within three within four within five
five years
years
years
years
years
(1) Cash and deposits(2) Operating accounts receivable(3) Long-term deposits
Total

2,466,624

-

-

-

-

-

426,756

-

-

-

-

-

-

7,800

-

-

-

-

2,893,381

7,800

-

-

-

-

(Note 3) Scheduled redemption amount of loans payables after the closing date (December 31, 2018)

Within one
year(4) Current portion of long-termloans payable(5) Long-term loans payable
合計(Unit: thousand yen)
Longer than Longer than Longer than Longer than
two years, three years, four years, Longer than
one year,five years
within two within three within four within five
years
years
years
years

1,239,176

-

-

-

-

-

-

2,122,610

1,995,867

1,275,305

1,292,889

16,371,247

1,239,176

2,122,610

1,995,867

1,275,305

1,292,889

16,371,247

Scheduled redemption amount of loans payables after the closing date (June 30, 2018)

Within one
year(Unit: thousand yen)
Longer than Longer than Longer than Longer than
two years, three years, four years, Longer than
one year,five years
within two within three within four within five
years
years
years
years
- 23 -

(4) Current portion of long-termloans payable

1,286,149

-

-

-

-

-

-

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005

1,286,149

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005(5) Long-term loans payable
Total[NOTES ON SECURITIES]
Prior fiscal period (as of December 31, 2018)
Not applicable.
Current fiscal period (as of June 30, 2019)
Not applicable.
[NOTES ON DERIVATIVE TRANSACTIONS]
1. Those to which hedge accounting is not applied
Prior fiscal period (as of December 31, 2018) and current fiscal period (as of June 30, 2019)
Not applicable.
2. Those to which hedge accounting is applied
Prior fiscal period (as of December 31, 2018)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions and othermatters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableLonger than one
year

Fair value

Method ofcalculation ofsaid market
value

21,411,430（Note）-

Contract amount and other amounts

22,603,027(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-termloans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented together with the fairvalue of (Note 1) (3) Current portion of long-term loans payable and (4) Long-term loans payable in “Notes on financial
instruments 2.Matters relating to fair values of financial instruments, among other matters” .
Current fiscal period (as of June 30, 2019)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions and othermatters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableLonger than one
year

Fair value

Method ofcalculation ofsaid market
value

20,811,569（Note）-

Contract amount and other amounts

22,012,204(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-termloans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented together with the fairvalue of (Note 1) (4) Current portion of long-term loans payable and (5) Long-term loans payable in “Notes on financial
instruments 2.Matters relating to fair values of financial instruments, among other matters”[NOTES ON RETIREMENT BENEFITS]
Prior fiscal period (as of December 31, 2018)
Not applicable.
Current fiscal period (as of June 30, 2019)- 24 -

Not applicable.

- 25 -

[NOTES ON TAX EFFECT ACCOUNTING]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
June 30, 2019

Accrued business tax not deductible from taxable
income1212Total deferred tax assets

12

12

Net amount of deferred tax assets

1212

2. Breakdown of each major item that causes a significant difference between the effective statutory tax rate and the rate of
the burden of corporate tax and other taxes after the application of tax effect accounting
Fiscal period ended
December 31, 2018
Effective statutory tax rate

Fiscal period ended
June 30, 201931.51%

31.51%

31.45)%

31.47)%--

Others

0.15%

0.08%

Rate of burden of corporate tax and other taxes after
the application of tax effect accounting

0.21%

0.12%

(Adjustment)
Dividends paid deductible for tax purpose
Loss carried forward and deducted for the period[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Prior fiscal period (as of December 31, 2018)
Not applicable.
Current fiscal period (as of June 30, 2019)
Not applicable.
[NOTES ON RELATED PARTY TRANSACTIONS]
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.
[NOTES ON ASSET RETIREMENT OBLIGATIONS]
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.

- 26 -

[NOTES ON INVESTMENT AND RENTAL PROPERTY]CSIF has renewable energy power generation facilities, etc. The book value, change during the period and fair value at theend of the period are as shown below.
(Unit: thousand yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
June 30, 2019

Book value (Note 2)
Beginning balance

31,110,561

42,077,910

Change during the period(Note 3)

10,967,348

598,784

Ending balance

42,077,910

42,676,695

Fair value at the end of theperiod (Note 4)

47,099,500

50,026,000(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus with respect to thebook value and the fair value, the amount of the renewable energy power generation facilities and real estate are stated together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended December 31, 2018 primarily consisted of the increase due to acquisition of three photovoltaic power generation
facilities (11,651,820 thousand yen), and the decrease due to depreciation expenses (713,168 thousand yen). And the change during the period ended
June 30, 2019 primarily consisted of the increase due to acquisition of two photovoltaic power generation facilities (1,357,292 thousand yen), and thedecrease due to depreciation expenses (813,047 thousand yen).
(Note 4) The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles of Incorporation on the basis of
the appraised value in the range stated in the valuation report with the date of the value opinion on December 31, 2018 and June 30, 2019, which was
obtained from PricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd..

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended December
31, 2018 (the 3rd period) and the fiscal period ended June 30, 2019 (the 4th period) are as stated in the “Notes to statement ofincome” above.
[NOTES ON SEGMENT INFORMATION]
1.Segment information

Since CSIF has a single segment of the rental business of infrastructure assets, the segment information is omitted.
2.Related Information
Prior fiscal period (from July 1, 2018 to December 31, 2018)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds 90% of
the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of the operating revenue
on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amount ofproperty and equipment on the balance sheet.

- 27 -

（３）Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Name of related segment

Tida Power 01 G.K.

1,529,305

Renewable energy power generation
facilities, etc. rental business

Univergy 23 G.K.

10,868Renewable energy power generation
facilities, etc. rental business

CLEAN ENERGIES XXI G.K.

241,089

Renewable energy power generation
facilities, etc. rental business

3,984

Renewable energy power generation
facilities, etc. rental business

Univergy 10 G.K.

Current fiscal period (from January 1, 2019 to June 30, 2019)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds 90%of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of the operating
revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amountof property and equipment on the balance sheet.
（３）Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Name of related segment

2,038,531

Renewable energy power generation
facilities, etc. rental business

CLEAN ENERGIES XXI G.K.

99,893

Renewable energy power generation
facilities, etc. rental business

Univergy 01 G.K.

17,006

CLEAN ENERGIES SOLUTIONS
K.K.

29,758Tida Power 01 G.K.

Renewable energy power generation
facilities, etc. rental business
Renewable energy power generation
facilities, etc. rental business[NOTES ON PER UNIT INFORMATION]
Prior fiscal period
From July 1,2018
to December 31, 2018
Net assets per unit
Net income (Net loss) per unit

96,523 yen
1,932 yen

Current fiscal period
From July 1, 2018
December 31, 2018
95,996 yen
3,072 yen

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units during the period. In theprevious fiscal period, a loss was posted and there were no dilutive investment units, and thus diluted loss per unit is not stated. With respect todiluted profit per unit for the period under review, there are no dilutive investment units, and thus the statement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.

- 28 -

Prior fiscal period
From July 1,2018
to December 31, 2018
Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)
Net income (Net loss) attributable to Common unit
holders (Thousand yen)
Average number of investment units during the period(Units)[NOTES ON FACTS ARISING AFTER THE SETTLEMENT OF ACCOUNTS]
Not applicable- 29 -

Current fiscal period
From July 1, 2018
December 31, 2018

412,187

710,419--

412,187

710,419

213,246

231,190

(10) Change in the total number of investment units issued and outstanding
Change in the total number of investment units issued and outstanding and the total amount of unitholders' capital is as shown
below since the establishment of the CSIF.

Date

Total number of investment units
issued and outstanding (units)

Event

ChangeMay 18, 2017
October 27, 2017

November 28, 2017

September 5, 2018

Establishment upon
private placement
Capital increase by
public offering
Capital increase by
third-party
allotment
Capital increase by
public offering

Balance

Total amount of unitholders'
capital (Note 1) (million yen)
ChangeRemarks

Balance

1,500

1,500

150

150

(Note 2)

177,800

179,300

16,891

17,041(Note 3)2,890

182,190274

17,315(Note 4)

46,667

228,857

4,509

21,824(Note 5)-

228,857

147)

21,677(Note 6)

Cash distribution inexcess of earnings
September 14, 2018(refund ofinvestment)
October 4, 2018

Capital increase by
third-party
allotment

2,333

231,190

225

21,902(Note 7)

March 14, 2019

Cash distribution inexcess of earnings(refund ofinvestment)-

231,190(420)

21,482(Note 8)(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The party who applied for subscriptionof investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥100,000 (issue value of ¥95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of ¥95,000 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or part of repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥102,180 (issue value of ¥96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess of earnings (refund of investment)in an amount of ¥808 per unit for the second fiscal period (ended June 30, 2018), and began to pay it from September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of ¥96,625 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or a part of the funds for repayment of borrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥1,817 per unit for the third fiscal period (ended December 31, 2018), and began to pay it from March 14, 2019.

4. Reference(1) Conditions of Investment(as of June 30, 2019)
Type of asset

Solar energy facility

Total Asset-UnderManagement (AUM)(‘000yen)(Note 2)

Region (Note 1)% of total AUM(Note 3)

Hokkaido/Tohoku

1,040,655

2.3

Kanto

2,461,223

5.4

Tokai

1,418,596

3.1- 30 -

Chugoku/Shikoku

10,484,457

22.8

Kyushu22,292,578

48.5

37,697,511

82.0

Hokkaido/Tohoku

48,9700.1

Kanto

647,430

1.4

Tokai

63,3090.1

Chugoku/Shikoku

522,185

1.1

3,184,875

6.9

4,466,771

9.7

Hokkaido/Tohoku

17,9240.0

Kanto

59,1970.1

Tokai41,4230.1

Chugoku/Shikoku

3,415

0.0

390,4500.8

512,411

1.1

Hokkaido/Tohoku

1,107,550

2.4

Kanto

3,167,851

6.9

Tokai

1,523,330

3.3

Chugoku/Shikoku

11,010,058

23.9

Kyushu25,867,904

56.3

42,676,695

92.8

Solar energy facility etc. total

42,676,695

92.8

Saving/other assets

3,304,406

7.2

Asset total (2)45,981,101

100.0

Subtotal

Land

KyushuSubtotal

Land lease

KyushuSubtotal

Solar energy facility etc.

Subtotal(Unit: thousand yen)

% of total AUM(3)Total liabilities

23,787,702

51.7

Total net assets

22,193,399

48.3(Note 1) “Hokkaido and Tohoku” denote Hokkaido, Aomori-ken, Iwate-ken, Akita-ken, Miyagi-ken, Fukushima-ken and Yamagata-ken. “Kanto” denotes
Ibaraki-ken, Tochigi-ken, Gunma-ken, Tokyo-to, Kanagawa-ken, Saitama-ken, Chiba-ken Yamanashi-ken, Nagano-ken and Niigata-ken. “Tokai”
denotes Shizuoka-ken, Aichi-ken, Gifu-ken, Mie-ken, Toyama-ken, Ishikawa-ken and Fukui-ken. “Chugoku and Shikoku” denote Okayama-ken,
Hiroshima-ken, Yamaguchi-ken, Tottori-ken, Shimane-ken, Kagawa-ken, Kochi-ken, Tokushima-ken and Ehime-ken. “Kyushu” denotes
Fukuoka-ken, Oita-ken, Miyazaki-ken, Kagoshima-ken, Kumamoto-ken, Nagasaki-ken, Saga-ken and Okinawa-ken.
(Note 2) The amount posted on the balance sheet as of June 30, 2019.
(Note 3) The figures have been rounded to the first decimal place.

- 31 -

(2) Investment Assets①Investment Securities
Not Applicable②Investment Properties
Not Applicable③Major Investment Assets
a. summary information for the CSIF
The following table provides summary information for the CSIF current 20 solar energy projects as of June 30, 2019.
PPA purchaseprice(yen/kwh)

Certification
Date

FIT term end

19,86140

February 26,
2013

September
16, 2034

Isa-shi, Kagoshima

22,22340

February 26,
2013

June 8, 2035

Kasama-shi, Ibaraki

42,666(Note 1)40

January 25,
2013

June 25, 2035

CS Isa-shi Daini Power Plant

Isa-shi, Kagoshima

31,81836

October 2,
2013

June 28, 2035

Solar Plant
etc.

CS Yusui-cho
Power Plant

Aira-gun,Kagoshima

25,27436

March 14,2014

August 20,
2035

S-06

Solar Plant
etc.

CS Isa-shi Daisan Power Plant

Isa-shi, Kagoshima

40,73640

February 26,
2013

September
15, 2035

S-07

Solar Plant
etc.

CS Kasama-shi
Dai-ni Power
Plant

Kasama-shi, Ibaraki

53,27540

January 25,
2013

September23, 2035

S-08

Solar Plant
etc.

CS Hiji-machi
Power Plant

Hayami-gun, Oita

30,24636

July 16, 2013

October 12,
2035

S-09

Solar Plant
etc.

CS Ashikitamachi Power
Plant

Ashikita-gun,
Kumamoto

45,74040

February 26,
2013

December 10,
2035

Asset #

Category

Project nameLocation

Site Area
(m2)

S-01

Solar Plant
etc.

CS Shibushi-shi
Power Plant

Shibushi-shi,
Kagoshima

S-02

Solar Plant
etc.

CS Isa-shi
Power Plant

Solar Plant

CS Kasama-shi

etc.

Power Plant

S-04

Solar Plant
etc.

S-05

S-03

- 32 -

S-10

Solar Plant
etc.

CS
Minamishimabar
a-shi Power
Plant (East) / CS
Minamishimabar
a-shi Power
Plant (West)

Minamishimabarashi, Nagasaki

56,066

S-11

Solar Plant
etc.

CS Minanomachi Power
Plant

Chichibu-gun,
Saitama

S-12

Solar Plant
etc.

CS Kannamicho Power Plant

Tagata-gun,Shizuoka

S-13

Solar Plant
etc.

CS Mashikimachi Power
Plant

S-14

Solar Plant
etc.

S-15

S-16

40

February 26,
2013 (East)
February 26,
2013 (West)

December 24,
2035 (East)
January 28,2036 (West)44,90432

December 11,
2014

December 06,
2036

41,33936

March 31,2014

March 02,2037

Kamimashiki-gun,
Kumamoto

638,552（Note2）36

October 24,
2013

June 01, 2037

CS Koriyamashi Power Plan

Koriyama-shi,
Fukushima

30,376（Note1）32

February 27,
2015

September
15, 2036

Solar Plant
etc.

CS Tsuyama-shi
Power Plant

Tsuyama-shi,
Okayama

31,05932

September
26, 2014

June 29, 2037

Solar Plant
etc.

CS Ena-shi
Power Plant

Aza Ochise,
Kusumi, Osashimacho, Ena-shi, Gifu

37,37332

February 24,
2015

September
12, 2037

S-17

Solar Plant
etc.

CS Daisen-choPower Plant (A)and (B)

Aza Magoese,
Toyofusa, Daisencho, Saihaku-gun,Tottori (A)Aza Kamikawara,
Toyofusa, Daisencho, Saihaku-gun,Tottori (B)452,760（Note 3）40

February 22,2013 (A)February 28,
2013 (B)

August 9,
2037

S-18

Solar Plant
etc.

CS Takayamashi Power Plant

Shingumachi,
Takayama-shi, Gifu

16,278(Note 1）32

January 30,
2015

October 09,
2037

S-19

Solar Plant
etc.

CS Misatomachi Power
Plant

Misato-machi,
Kodama-gun,
Saitama

25,31532

January 6,
2015

March 26,
2037

S-20

Solar Plant
etc.

CS Marumorimachi Power
Plant

Marumori-machi,
Igu-gun, Miyagi

65,306(Note 4)36

February 28,
2014

July 12, 2038

(Note 1) Site area for the portion of the solar energy plants land under ownership is shown, and excludes the portion of the land
where we hold an easement.
(Note 2) Site area for the portion of the solar energy plants and high-voltage land under ownership is shown, and excludes the portionof the land where we hold an easement.
(Note 3) Site area for the portion of the solar energy plants and high-voltage land under superficies is shown and excludes the portionof the land where we hold an easement.
(Note 4) Site area for the portion of the solar energy plants and high-voltage land and access roads under superficies is shown, andexcludes the portion of the land where we hold an easement.

- 33 -

Asset#S-01

Project name

CS Shibushi-shi
Power Plant

Certified
Operator

Tida Power 01
G.K

PPA
company

AcquisitionPrice(millionyen)(Note 1)

KyushuElectric
Power Co.,Inc

Fiscal period
end valuation(million yen)
(Note 2)

Appraisal valueof solar plants(millionyen)(Note 3)(upper：solar
energy facility)(lower：land)

Fiscalperiod end
book value(millionyen) (Note
4)

472
540

607

520
135

- 34 -

S-02

S-03

S-04

S-05

S-06

S-07

S-08

S-09

S-10

S-11

S-12

S-13

CS Isa-shi Power
Plant

Tida Power01
G.K.

KyushuElectric
Power Co.,Inc

CS Kasama-shi
Power Plant

Tida Power01
G.K.

TEPCO
EnergyPartner,
Incorporated

Tida Power01
G.K.

KyushuElectric
Power Co.,IncCS Isa-shi Dai-niPower Plant

CS Yusui-cho
Power Plant

Tida Power01
G.K.

CS Isa-shi Dai-

Tida Power01

san Power Plant

G.K..

CS Kasama-shi
Dai-ni Power
Plant

Tida Power01
G.K..

CS Hiji-machi
Power Plant

Tida Power01
G.K.

CS Ashikitamachi Power
Plant

Tida Power01
G.K..

CS
Minamishimabar
a-shi Power Plant(East) / CS
Minamishimabar
a-shi Power Plant(West)

387
372

907

408

355
21
815

1,082

875
267
808

778

847

737
38

KyushuElectric
Power Co.,
Inc

698
670

730

636
31

KyushuElectric

973
949

Power Co.,
Inc
TEPCO
EnergyPartner,
IncorporatedKyushuElectric
Power Co.,Inc
KyushuElectric
Power Co.,
Inc

1,033

899
59
874

850

923

800
49
1,069

1,029

1,111

973
41
1,041

989

1,081

937
39
1,909

Tida Power 01
G.K.

KyushuElectric
Power Co.,Inc

CS Minanomachi Power
Plant

Tida Power01
G.K.

TEPCO
EnergyPartner,
Incorporated

CS Kannami-cho
Power Plant

Tida Power01
G.K..

TEPCO
EnergyPartner,
Incorporated

CS Mashikimachi Power
Plan

Tida Power01
G.K.

KyushuElectric
Power Co.,
Inc.

1,733

1,988

1,644
78

909
1,018

1,173

1,007
264
551

514

593

490
41
20,19520,084

23,465

19,1653,270- 35 -

S-14

S-15

S-16

S-17

S-18

S-19

S-20

CS Koriyama-shi
Power Plan

Tida Power01
G.K..

TohokuElectric
Power Co.,Inc.

CS Tsuyama-shi
Power Plan

Tida Power01
G.K..

The Chugoku
Electric
Power Co.,Inc.

Tida Power01
G.K..

The Chubu
Electric
Power Co.,Inc.

CS Daisen-choPower Plant (A)and (B)

Tida Power01
G.K..
(Note 5)The Chugoku
Electric
Power Co.,Inc.

CS Takayama-shi
Power Plant

Tida Power01
G.K.

The Chubu
Electric
Power Co.,Inc.

CS Ena-shi
Power Plant

CS Misato-machi
Univergy 01 G.K.
Power Plant

CS Marumorimachi Power
Plant

CLEAN
ENERGIESSOLUTIONS
K.K.

222
246

272

246
50
690

746

817

772
127
832

757

868

702
36
10,96010,447

11,310

10,237
350
298

326

359

329
61

TEPCO
EnergyPartner,
Incorporated
TohokuElectric
Power Co.,
Inc.

365
470

488

484
123
848

850

866

860
17
44,925

Total

44,28150,02642,676
5,100(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition expenses related to the payment ofoutsourcing service fees, property-related taxes, taxes on depreciable assets, urban planning taxes, consumption taxes and other fees).
(Note 2) Median project valuation report amount is the median amount that we calculated based on the estimated values as of June 30, 2019 provided to us
by PricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd. in its project valuation report. Basedon the appraised value in the range stated in the valuation report with the date of the value opinion on June 30, 2019, which was obtained fromPricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd., the Investment Corporation calculated
the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles of Incorporation, and the said sum is used in
the statement.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects that is obtained by deducting the realestate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. from the appraised value at the end of the period in (Note 2) above isstated, and on the lower row, an amount stated in the real estate appraisal report prepared by Daiwa Real Estate Appraisal Co., Ltd. is stated. Realestate includes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy as of June 30, 2019.
(Note 5) Former certified operator, CLEAN ENERGIES XXI G.K., was merged into Tida Powe01 G.K. as of March 19, 2019.

- 36 -

b. Revenue and expenses of individual renewable energy power generation facilities
Third fiscal period (from July 1, 2018 to December 31, 2018)(Unit: thousand yen)
Asset number

S-01

S-02

S-03

S-04

S-05

CS Isa-shi
CS Isa-shi CS Kasama-shi Dai-niPower Plant Power Plant Power Plant

CS Yusuicho Power
Plant

Total portfolio

CS Shibushishi PowerPlant

1,478,843

18,727

14,31335,32729,51026,827

706,346

6,605

5,648

17,266

10,641

5,533

202

-

-

202

-

-

2,185,392

25,332

19,961

52,79640,15232,361

217,138

2,254

1,699

3,791

3,768

3,277

217,138

2,254

1,699

3,791

3,768

3,277

-

-

-

-

-

-

203,928

1,907

2,261

3,277

5,236

3,987

144,616

1,701

1,299

2,931

2,866

2,425

8,560

-

-

-

458

-

(Utilities expenses)

-

-

-

-

-

-

(Insurance expenses)

17,023

205

168

346

320

298

(Land rent )33,727

-

794

-

1,590

1,263

-

-

-

-

-

-

Depreciation cost

813,047

9,459

7,835

14,462

16,44914,242(Structures)

17,018

447

256

324

306

582

(Machinery and equipment)

785,639

8,970

7,561

14,104

16,101

13,425(Tools, furniture and fixtures)

10,389

41

17

33

41

235

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

1,234,114

13,621

11,796

21,53225,45421,507

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

951,278

11,711

8,165

31,264

14,697

10,853

Project nameRental revenue of renewable energy
power generation facilities, etc.
Basic rent
Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Repair and maintenance costs)(Other rental cost)- 37 -

(Unit: thousand yen)
Asset number

Project name

S-06

S-07

S-08

S-09

S-10

CS
Minamishimabarashi Power Plant
CS Hiji-machi CS Ashikita-machi(East) / CS
Power Plant
Power Plant
Minamishimabarashi Power Plant(West)CS Kasama-shi
CS Isa-shi Dai- Dai-ni Powersan Power Plant Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

35,69534,89737,94935,75363,488

12,165

16,38615,805

12,81527,370

-

-

-

-

-

47,86051,28453,75548,56890,859

4,494

4,304

5,167

4,879

8,533

4,494

4,304

5,167

4,879

8,533

-

-

-

-

-

5,551

6,964

5,622

5,337

11,314

3,080

3,532

3,562

3,249

6,502

(Repair and maintenance costs)

84

700

-

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

349

335

419

406

551

2,036

2,396

1,639

1,681

4,260

-

-

-

-

-

Depreciation cost

19,784

17,60422,066

20,20735,224(Structures)

290

247

835

1,441

739

19,443

17,314

21,116

18,514

34,235(Tools, furniture and fixtures)

51

42

114

252

248

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

29,83028,87332,85530,42455,071

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

18,03022,41020,89918,14435,787

Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Land rent )(Other rental cost)(Machinery and equipment)- 38 -

(Unit: thousand yen)
Asset number
Project name

S-11

S-12

S-13

S-14

S-15

CS Minano-machi CS Kannami-cho CS Mashiki-machi CS Koriyama-shi CS Tsuyama-shi
Power Plant
Power Plant
Power Plan
Power Plan
Power Plan

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

35,51919,644

664,560

8,085

24,444

Variable rent linked to actual output

15,005

9,060

247,774

5,215

12,668

-

-

-

-

-

50,52528,705912,334

13,30037,113

4,412

2,398

96,650

1,298

3,901

4,412

2,398

96,650

1,298

3,901

-

-

-

-

-

3,953

3,735

68,918990

10,045

3,372

1,840

61,168

883

2,727

178

42

-

-

7,096

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

402

198

7,703

106

221

(Land rent )

-

1,653

45

-

-

(Other rental cost)

-

-

-

-

-

Depreciation cost

16,132

9,662

344,340

4,191

12,946(Structures)

766

380

3,531

327

365

15,3669,226

332,915

3,864

12,276(Tools, furniture and fixtures)

-

55

7,893

-

304

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

24,49915,796509,908

6,479

26,893

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

26,025

12,908402,426

6,820

10,219

Incidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Repair and maintenance costs)(Machinery and equipment)39

(Unit: thousand yen)
Asset number

S-16

S-17

S-18

S-19

S-20

Project name

CS Ena-shi
Power Plant

CS Daisen-choPower Plant (A)and (B)CS Takayamashi Power Plant

CS Misatomachi Power
Plant

CS Marumorimachi Power
Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

26,398327,901

11,075

10,733

17,989Variable rent linked to actual output

15,982

247,066

5,290

6,273

11,768

-

-

-

-

-

42,381

574,967

16,36517,00629,7584,344

59,954

2,007

-

-

4,344

59,954

2,007

-

-

-

-

-

-

-

4,306

54,498

1,411

877

3,730

3,115

36,805

1,296

877

1,376

(Repair and maintenance costs)

-

-

-

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

252

4,622

114

-

-

(Land rent )938

13,070

-

-

2,354

-

-

-

-

-

Depreciation cost

14,510214,526

5,496

5,056

8,847

(Structures)

589

4,863

344

117

261

13,823208,879

5,139

4,896

8,464

97

782

12

41

121

Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal B)

23,161

328,979

8,915

5,934

12,578

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

19,219245,988

7,450

11,072

17,179

Incidental income
Total operating revenue from the rental
business of renewable energy power
generation facilities, etc. (subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Other rental cost)(Machinery and equipment)(Tools, furniture and fixtures)(Note) The calculation period of the fourth fiscal period is from January 1,2019 to June 30,2019(181days);
however, the substantial period of CS Misato-machi Power Plant and CS Marumori-machi Power Plant are from March 1,
2019 and March 29, 2019 to December 31,2018 (122days and 94days) respectively.

40

(3) Plan for capital expenditure
Not applicable.

41(4) Capital expenditure during the fiscal period
The following table shows capital expenditures for renewable energy power generation facilities, etc. owned by CSIF during the
fiscal period under review.
Name of infrastructure assets, etc.
(Location)
CS Tsuyama-shi Power Plant(Tsuyama-shi, Okayama)Purpose

Implementation period

Slope disaster countermeasures
works

From November 5, 2018
To March 15, 2019

Other plants

Amount paid
(thousand yen)
42,403
12,135Total- 42 -

54,539